In this video, Benjamin Cowen explains why gold’s recent all-time highs matter far beyond its USD price. Instead of focusing on headlines, he highlights two long-term charts that signal a broader shift in the macro environment.
Key points
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The real focus isn’t gold versus the dollar, but gold versus stocks. Despite the S&P 500 rising more than 40% since 2022, it has fallen nearly 50% against gold, showing gold’s relative strength.
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Cowen argues the stock market is breaking down against gold, a pattern that often signals a longer-term trend change rather than a short-term move.
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He expects volatility and possible pullbacks, but sees any weakness against stocks as temporary rather than a reversal.
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The second major chart is gold relative to the money supply (M2). Gold has already moved above its 2011 highs on this measure.
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If monetary expansion continues, Cowen believes a move toward $6,000 gold over time would be reasonable.
Takeaway
Cowen’s view is that gold is reasserting itself as a macro asset. While other markets struggle for direction, gold is strengthening relative to both stocks and liquidity, a setup that historically favors higher prices over the long term.
